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Simplicity HoldingHKSE:08367 65 Gross Margin % is 5.17% as of Sep. 2025, which is 82% below its 10-year median of 29.31. GuruFocus rates HKSE:08367 with a GF Score™ of 65/100 and a GF Value™ of HK$1.03 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 353 Restaurants companies, Simplicity Holding ranks better than 52.97% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Simplicity Holding had a gross margin of 5.17% for the quarter that ended in Sep. 2025 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Simplicity Holding Gross Margin % Related Terms
Simplicity Holding Gross Margin % Historical Data
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The historical data trend for Simplicity Holding's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HKSE:08367 vs MCD, SBUX, YUM: Gross Margin % Comparison
For the Restaurants subindustry, Simplicity Holding's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Simplicity Holding Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Simplicity Holding's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Simplicity Holding's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Simplicity Holding (HKSE:08367) has a Gross Margin % of 5.17% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Simplicity Holding and its competitors. This is 82% below median its historical median of 29.31. Over the past decade, Simplicity Holding's Gross Margin % has ranged from 1.53 to 46.86. According to the industry distribution chart, Simplicity Holding ranks #166 out of 353 companies in the Restaurants industry, placing it in the top 47%.
Is Simplicity Holding's Gross Margin % too high?
Simplicity Holding's current Gross Margin % of 5.17% is 82% below median its 10-year median of 29.31. Over the past 10 years, this metric has ranged from a low of 1.53 to a high of 46.86. The Restaurants industry median Gross Margin % is 45.66. Simplicity Holding's value of 5.17% is 88.7% below this industry median. Based on the distribution chart, Simplicity Holding ranks #166 out of 353 companies in the Restaurants industry, which is above the industry midpoint. Overall, Simplicity Holding has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Simplicity Holding's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Simplicity Holding ranks #166 out of 353 companies for Gross Margin %. This puts Simplicity Holding in the upper half of its industry. The industry median Gross Margin % is 45.66. Simplicity Holding's value of 5.17% is 88.7% below this benchmark. Historically, Simplicity Holding's own Gross Margin % has ranged from 1.53 to 46.86 over the past decade. While the company's 10-year median is 29.31 vs. the industry median of 45.66, Simplicity Holding has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.66, based on 353 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Simplicity Holding's current Gross Margin % of 5.17% is 88.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Simplicity Holding and its competitors. For the Restaurants industry, the median Gross Margin % is 45.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simplicity Holding's current Gross Margin % is 5.17%, which is 82% below median its own 10-year median of 29.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simplicity Holding stock overvalued right now?
Based on GuruFocus' analysis, Simplicity Holding (HKSE:08367) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.03, compared to a current price of HK$0.25 — trading 75.7% below its estimated fair value. The current Gross Margin % is 5.17%, which is 82% below median its 10-year median of 29.31 and 88.7% below the Restaurants industry median of 45.66. Simplicity Holding's overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Simplicity Holding (HKSE:08367), the current Gross Margin % is 5.17% as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Simplicity Holding (HKSE:08367) Overvalued in 2026?
Based on GuruFocus' analysis, Simplicity Holding stock appears to be undervalued.
The current stock price of HK$0.25 is trading 75.7% below its estimated GF Value™ of HK$1.03.
GuruFocus considers Simplicity Holding to be Possible Value Trap.
Key valuation signals for HKSE:08367:
Gross Margin %: 5.17% (82% below median its 10-year median of 29.31)
GF Value™: HK$1.03 vs. price of HK$0.25 (75.7% below fair value)
Industry Position: 88.7% below the Restaurants median (#166 of 353)
No single metric tells the full story. See the HKSE:08367 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simplicity Holding Ltd is a casual dining full-service restaurant operator. The company also provide services of aircraft engine stand repair, and maintenance, and other related services. The company offers Chinese, Western, and Thai Cuisine. Its reportable segments are Chinese cuisine; Thai cuisine; Malaysian cuisine; and Food ingredients and beverages operations, and Aircraft engine stand repairing and maintenance services. The company generates its revenue from Hong Kong.
65GF Score
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